The volatility prompts warnings from analysts that investors should take care when putting money in cryptocurrencies.
Bitcoin plunged by more than 20% over the weekend – wiping more than $10,000 (£7,395) off the price of a single coin.
The fall puts the cryptocurrency on track for its biggest one-day drop since March, when the COVID-19 pandemic was just beginning to shred global markets
Bitcoin fell as low as $30,500 on Monday afternoon – its lowest point since 5 January – after reaching a record $42,000 on Friday.
The crash prompted the UK’s Financial Conduct Authority to warn that those who invest in cryptocurrencies should be prepared to lose all of their money.
In a statement, the FCA said crypto investments generally involve very high risks – and some investment companies may understate these dangers while exaggerating potential returns.
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